Namibia’s mining sector should expect a rise in fuel costs as the Ministry of Mines and Energy (MME) has announced sharp increases in fuel prices, effective Wednesday, February 5, 2025.
Petrol prices will rise by N$0.42 per litre, while diesel—critical for mining operations—will see a N$1.20 per litre hike.
In Walvis Bay, petrol will now cost N$20.67 per litre, while diesel 50ppm and diesel 10ppm will be priced at N$20.92 and N$21.02 per litre, respectively.
The ministry attributes the spike to rising global oil prices and a 2.9% depreciation of the Namibian Dollar against the US Dollar. Increased oil demand in the Northern Hemisphere due to winter, coupled with geopolitical tensions and OPEC+ production cuts, has tightened global supply, pushing prices higher.
January 2025 data shows a sharp increase in oil prices compared to December 2024. The average price of Petrol 95 rose by 4.5% to US$87.41 per barrel, while Diesel 50ppm and Diesel 10ppm jumped by 7% to US$94.69 and US$94.83 per barrel, respectively.
For Namibia’s mining industry, which heavily relies on diesel-powered machinery and transport, the cost surge is expected to increase operational expenses. Despite the price hikes, the National Energy Fund will absorb part of the under-recoveries to cushion the impact.
The government says it will continue monitoring international oil markets and aligning domestic fuel prices while ensuring stability in supply.
